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  #41  
Old 24.09.2020, 12:45
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Re: New inheritance law. (2020/21)

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I do not understand.

If someone dies the insurance does not pay the flat? Credit insurance or Life insurance (not sure what is the name).

This is quite common in Portugal. The insurance is quite heavy but if one dies mortgage is 100% paid.
It's not normal, nor indeed very common, in Switzerland.

Most mortgages are mostly interest-only, with no insurance/endowment needed, and will often continue through the generations with whoever inherits the house, with no expectation or requirement that they'll be paid off at any given point in time.
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  #42  
Old 24.09.2020, 13:11
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Re: New inheritance law. (2020/21)

In the UK most people pay off their mortgages as soon as possible. In Switzerland, and perhaps Portugal, there may be good reasons not to pay off the mortgage. Tax laws in particular.
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  #43  
Old 24.09.2020, 13:15
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Re: New inheritance law. (2020/21)

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Anyone care to sum up what changes are proposed in this new legislation?

I know we should really get around to making wills, but with no children or dependants it's perhaps not quite so crucial for us as it may be. But I'd like to understand if the new law would make things better, or worse, for a remaining partner should one of us die.

It is vastly important for each other- especially if you are not married nor 'paxed'. Do it, then forget about it.


But yes, thanks for asking for precision on the proposals being made.
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  #44  
Old 24.09.2020, 13:33
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Re: New inheritance law. (2020/21)

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In the UK most people pay off their mortgages as soon as possible. In Switzerland, and perhaps Portugal, there may be good reasons not to pay off the mortgage. Tax laws in particular.
In Portugal, no money and culture of buying much bigger than necessary so 40 years mortgage (nowadays not sure) but 3..4 years ago was cultural accepted.

I know this because we bought a flat with 520/month mortgage (as an example) and insurance for death is 160 because owner was female and 57 years old at the time.

PS; I am in this decision process nowadays to decide if i pay mortgage or not. If i pay 100k is paid and i save some in interest but interest is around 1..2% (fix rate)/year and if owner dies (my mother, hope not) it is paid anyway.

So hard decision
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  #45  
Old 24.09.2020, 14:04
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Re: New inheritance law. (2020/21)

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In Portugal, no money and culture of buying much bigger than necessary so 40 years mortgage (nowadays not sure) but 3..4 years ago was cultural accepted.

I know this because we bought a flat with 520/month mortgage (as an example) and insurance for death is 160 because owner was female and 57 years old at the time.

PS; I am in this decision process nowadays to decide if i pay mortgage or not. If i pay 100k is paid and i save some in interest but interest is around 1..2% (fix rate)/year and if owner dies (my mother, hope not) it is paid anyway.

So hard decision
I can confirm this, with every mortgage in Portugal, the mortgage holder(s) need to take a mandatory life insurance with the financing entity. Banks play the long game. People were buying in the late 20s, avg life expectancy was ~70s so the banks get ~40 years of revenue on the insurance and on the mortgage

If the mortgage holders were to die before the mortgage was settled those are outliers and the cost of this very nice business model (for the banks).... they still went bust in 2008 due to over lending and very lax mortgage approval criteria
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  #46  
Old 24.09.2020, 14:05
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Re: New inheritance law. (2020/21)

You would also save 160/m on your insurance costs.
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  #47  
Old 24.09.2020, 14:29
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Re: New inheritance law. (2020/21)

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If you don’t have a will, who knows? If you do have a will you can include a provision that you want your estate dealt with under the laws of your nationality (or state/province/regional area/whatever) The Swiss generally accept this ...
Well I don't have a will because unless you have a complex inheritance (children from previous marriages, a lot of properties, etc) the Italian law is one of those very prescriptive.

50% of my stuff goes to the Mrs., the other 50% is split between all direct heirs (again the Mrs. and any children): so another 25% to the Mrs. and 25% to my son. With a will (under the Italian law) I think I can do something with 25% of the non-Mrs., in that case she would get 50%+12.5% and the kid 12.5% (the kid doesn't get a lot but then he would get all the stuff from mummy unless she remarries). The other thing you can do with your will is allocate your properties "smart": instead of leaving two houses 75-25 to the wife and kid, you could leave 100 of one house to the wife and 100 to the kid if the second house for example has a lower value.

However, good to know. I was planning in any case to write a will as they say it still makes thing easier even if you split everything according to the law.
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  #48  
Old 24.09.2020, 14:41
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Re: New inheritance law. (2020/21)

Italian and Swiss are mostly the same, I can't recall the few differences.

Tom
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  #49  
Old 25.09.2020, 14:38
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Re: New inheritance law. (2020/21)

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Well I don't have a will because unless you have a complex inheritance (children from previous marriages, a lot of properties, etc) the Italian law is one of those very prescriptive.

50% of my stuff goes to the Mrs., the other 50% is split between all direct heirs (again the Mrs. and any children): so another 25% to the Mrs. and 25% to my son. With a will (under the Italian law) I think I can do something with 25% of the non-Mrs., in that case she would get 50%+12.5% and the kid 12.5% (the kid doesn't get a lot but then he would get all the stuff from mummy unless she remarries). The other thing you can do with your will is allocate your properties "smart": instead of leaving two houses 75-25 to the wife and kid, you could leave 100 of one house to the wife and 100 to the kid if the second house for example has a lower value.

However, good to know. I was planning in any case to write a will as they say it still makes thing easier even if you split everything according to the law.
Wait, so if my husband dies, half the house goes to my kids? Does that mean the kids can force me to sell it? This doesn't sound great.
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  #50  
Old 25.09.2020, 15:10
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Re: New inheritance law. (2020/21)

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Wait, so if my husband dies, half the house goes to my kids? Does that mean the kids can force me to sell it? This doesn't sound great.
Half of his share of the house, not half of the house (unless it is 100% his).

Also, most probably belongs to the bank.

Tom
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  #51  
Old 25.09.2020, 15:12
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Re: New inheritance law. (2020/21)

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Half of his share of the house, not half of the house (unless it is 100% his).

Tom
Half share of the house less half of the mortgage.
I suspect the kids have to pay half the mortgage & repair costs going forward.
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  #52  
Old 25.09.2020, 16:01
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Re: New inheritance law. (2020/21)

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Half share of the house less half of the mortgage.
I suspect the kids have to pay half the mortgage & repair costs going forward.
Well, the child is barely out of diapers, so I'm not sure how that works.
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  #53  
Old 25.09.2020, 16:08
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Re: New inheritance law. (2020/21)

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Well, the child is barely out of diapers, so I'm not sure how that works.
You would make a note of costs & when the property is sold deduct those expenses from the pay out.
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  #54  
Old 25.09.2020, 17:21
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Re: New inheritance law. (2020/21)

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You would make a note of costs & when the property is sold deduct those expenses from the pay out.
So either my husband or I dying is basically a logistical nightmare because we own a house? Good to know. Damn, this really sucks, what a headache. As if I wouldn't have enough on our minds if one of us died.
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  #55  
Old 25.09.2020, 17:24
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Re: New inheritance law. (2020/21)

Unless you go to a solicitor and sign a successoral pact, as we have. That means the surviving spouse inherits 100% and then when 2nd one dies, the kids will share the rest. Quite simple to do.
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Old 25.09.2020, 17:32
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Re: New inheritance law. (2020/21)

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Unless you go to a solicitor and sign a successoral pact, as we have. That means the surviving spouse inherits 100% and then when 2nd one dies, the kids will share the rest. Quite simple to do.
It's not 'Quite simple to do', you have to get the legal heirs to give up their rights given by law, it's not standard so it's actually quite something to ask someone to do. If any of the children are lazy good for nothing scroungers, then good luck with that.

Could you imagine kids who still live at home, who need parental support into their late 20's actually doing this?
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  #57  
Old 25.09.2020, 17:44
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Re: New inheritance law. (2020/21)

If the child is 'barely' our of diapers, it would be interesting to see what the solicitor would say.


My kids are adults in their 40s - and totally respect our choice. If they didn't- I would make sure I'd move to somewhere where I could give my money as I wished. The thought of giving to 'good for nothing uncaring kids' does not appeal.
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Old 25.09.2020, 17:57
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Re: New inheritance law. (2020/21)

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It's not 'Quite simple to do', you have to get the legal heirs to give up their rights given by law, it's not standard so it's actually quite something to ask someone to do. If any of the children are lazy good for nothing scroungers, then good luck with that.

Could you imagine kids who still live at home, who need parental support into their late 20's actually doing this?
My In-Laws had my husband sign away his rights to his parents estate until both have passed. I naively thought it would be different if the children are minors.
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Old 25.09.2020, 18:03
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Re: New inheritance law. (2020/21)

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If the child is 'barely' our of diapers, it would be interesting to see what the solicitor would say.
The child can't sign their rights away so it would be a moot point trying to get round the laws of your Birth Country, Citizenship & Residence, until they are legally adults
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Old 25.09.2020, 18:13
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Re: New inheritance law. (2020/21)

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My In-Laws had my husband sign away his rights to his parents estate until both have passed. I naively thought it would be different if the children are minors.

Which is why you should ask a solicitor, and not EF - and I would be very interested to know the answer.


Anyone done a successoral pact when they had minor children=
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